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Educational Improvement Tax Credit (EITC)  /Opportunity Scholarship Tax Credit (OSTC)

Fact Sheet

Tax Credit for Your Business – Tuition Aid for Students at Quigley Catholic School

A gift from your company to Quigley Catholic School for scholarships can provide your company with a substantial Pennsylvania tax credit through the Educational Tax Credit (EITC) Program.

 

How it Works:

The Quigley Catholic School is and “approved” Scholarship Organization.  The EITC program provides companies paying taxes in Pennsylvania tax credit is equal to 75 percent of its contribution up to a maximum of $750,000 per taxable year and can be increased to 90 percent of the contribution, if the business agrees to provide the same amount for two consecutive tax years.  For contributions to Pre-Kindergarten Scholarship Organizations, a business may receive a tax credit equal to 100 percent of the first $10,000 contributed and up to 90 percent of the remaining amount contributed up to a maximum credit of $200,000 annually.

 

Eligibility:

Businesses authorized to do business in PA and that are subject to one or more of the following taxes are eligible to participate:

 

¨Corporate Net Income Tax                                              ¨Title Insurance Companies Shares Tax

¨Capital Stock Franchise Tax                                            ¨Insurance Premiums Tax

¨Bank and Trust Company Shares Tax                          ¨Mutual Thrift Institution Tax

¨Personal income tax of S corporation shareholders or partnership partners

This is an opportunity you will not want to miss!

 

SAMPLE EITC CALCULATION (S-CORPS EXAMPLE):

 

 

Tax Liability Without EITC

Tax Liability with EITC

PA Taxable Income of Donor Company

 

$250,000

$250,000

PA Personal Income Tax

3.07%

$7,675

$7,675

Donation

 

$0

$8,000

PA EITC Credit

90.00%

$0

$7,200

Additional Federal Tax Deduction

 

$0

$800

Federal Tax Savings

35.00%

$0

$280

Donors Cash Outlay

 

$7,675

$8,000

Donor’s Tax Savings

 

$0

$7,480

Donor’s Net Cash Outlay for gift of $8,000

 

 

$520

 

Important Deadline:  The EITC program deadline is July 1st for new businesses and May 15th for returning businesses.

Applications must be submitted electronically by that day.  EITC funds are limited and awarded on a first come first served basis.  The sooner your company makes its commitment, the more likely funds will still be available for this fiscal year.  Ask your accountant or tax professional if this could work for you and your company.

 

For More Information:

If you have questions about the EITC Program, contact your accountant and/or the EITC office at (717)787-7120 or RA-EITC@state.pa.us.

 

Quigley Catholic’s EITC program is administered through Quigley Catholic High School.  We can be reached at (724)869-2188.

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How does it work?

 

Tax credits are provided to companies who make a donation to approved organizations. The Diocese of Pittsburgh is the approved organization for Quigley Catholic.

 

For a one-year commitment to Quigley Catholic, the company will receive a tax credit equal to 75% of the total contribution, up to a maximum of $750,000.  (For example, a $1,000 gift to QCHS results in a $750 credit.)

 

If a company commits to participating for two consecutive years, the tax credit increases to 90%, up to a maximum of $750,000. (A $1,000 gift results in a $900 tax credit.)

 

 

How do I know if my company is eligible?

 

If your company is authorized to do business in Pennsylvania and pays any of the following taxes, it is eligible to receive the tax credits:

         Corporate Net Income Tax                                    Mutual Thrift Institution Tax

         Capital Stock Franchise Tax                                               Gross Receipts Tax

         Bank and Trust Company Shares Tax                 Tax under the Insurance Company Law of 1921

         Title Insurance Companies Shares Tax              Personal Income Tax Insurance Premiums Tax

 

How do I apply?

 

Companies apply for the tax credits through the state’s online process.  The application guide can be found at www.newpa.com/eitcor www.newpa.com/ostc.  The applications are processed on a first-come, first-served basis so it is important that your application is received on July 1(or May 15 if you are finishing a 2 year commitment or are in year 2 of a 2 year commitment).   

 

How do we receive the tax credits? 

1.       Complete the online application process using the links above.  Please contact Harry Colin at Quigley Catholic (advancement@qchs.org / 724.869.2188) if you have questions or concerns.

2.       Within 60 days of receiving notification of approval from the DCED, make a contribution to the Scholastic

Opportunity Scholarship fund at the Diocese of Pittsburgh, designated to Quigley Catholic High School.  (Do not make your contribution until you receive approval notification from the State.)

3.       The Diocese provides an acknowledgement to the business.

4.       The business sends a copy of the Diocesan acknowledgement to the DCED within 90 days of the approval letter.

5.       The DCED notifies the Pennsylvania Department of Revenue to apply the appropriate amount of tax credits to the company’s business tax account.